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Past-ICO Review: Stox Tied to Bancor’s Sinking Ship

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  • Eric Eissler
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    Stox started out white hot, but it was tied to Bancor and that brought the curtain down on the token

Past-ICO Review: Stox Tied to Bancor’s Sinking Ship
Cover image via u.today

When the ICO took place, it was a sure bet that investors were placing their stock in Stox, a open source decentralized prediction market platform based on the Bancor protocol. This platform allows users to make predictions on pretty much anything that can be predicted, such as sporting outcomes, elections, whether; you name it, you can probably predict it on Stox.

Financials

Gibraltar-based Stox ran an ICO on Aug. 2, 2017 that lasted for one day and raised between $27 and $30 mln in funding. However, the token, which was launched two days after the ICO closed, on Aug. 4, 2017, has been in decline since its entry into the market. It debuted at $1.21, peaked at $2.60 on Aug. 25, and then fell sharply to $0.42 by the start of October 2017. It saw a price surge in December 2017, and reached $1.66 but fell down to $0.36 at the time of writing, demonstrating that investors have shied away from this once white-hot ICO. For a prediction-based platform, what has investors spooked? There doesn’t seem to be a prediction section on how well Stox will fare on its own website.

Mayweather: prominent ICO proponent

Floyd Mayweather has been known to promote ICOs. He posted on Instagram about Stox, where he flashed a suitcase of $100 bills and boasted he will “make a $hit t$n of money … on the Stox.com ICO.” This is not the first time Mayweather has promoted a crypto. He also promoted Centra Tech, which ended up on CryptoComes’ Top 10 ICO Failures. Does celebrity promotion lead to the demise of companies using an ICO? It’s an iffy statement. It could be the fact that Stox rode on the coattails of Bancor, even basing its smart-contracts on Bancor’s model.

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Do your homework before investing

Since Stox is based on the Bancor model, then it is understood why the price will go down. It is because any token created from Bancor will be tied into Bancor’s price. Bancor’s price is suffering since its debut in July 2017. Here is the reason why, taken from my Bancor Past-ICO Review here on CryptoComes:

According to Professor Emin Gun Sirer, Professor of Computer Science at Cornell University, Bancor will continue to trail the market and its lack of price discovery will diminish any smart tokens created from it.

This, in essence, will keep those coins [referring to any coins developed from Bancor’s Blockchain] from growing beyond that of Bancor’s price, remember they are tied together. In other words, the tokens created off Bancor have no chance to thrive. When the parent coin is going down, Bancor will take them down, too. Tim Draper, billionaire venture capitalist, and backer of Bancor argues otherwise that it will give liquidity to the market. If you bought Bancor, then liquidity is great, because you will want to sell it as fast as you can.

There you have it, it is the Blockchain Stox is based on that is dragging it down. The technology is cool and the users are enjoying the platform, who doesn’t love to take a gamble and place a bet, but its the parent Blockchain dragging down the token.

Better to lead, than to follow

While there are many tokens out there that are based on other Blockchains, such as Ethereum and EOS, these have been proven and accepted by the Blockchain community to be the proper places to build from. In many cases, the axiom, “it is better to lead, than to follow” plays to truth, if Stox did not follow Bancor’s model, it might have had a better chance at improving it’s token price, but alas, it is tethered to Bancor’s sinking ship.

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About the author

Eric Eissler is based in Chicago and works in higher-education administration and finance. He is a freelance writer covering blockchain technology, fintech, cryptocurrency, the oil and gas industry, and international politics.

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Bitcoin’s Domination May Rise According to One Analyst

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  • Vladislav Sopov
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    Famous analyst PlanB published an interesting chart showing the four stages of Bitcoin’s market dominance. It appears that he predicts hard times for the altcoins!

Bitcoin’s Domination May Rise According to One Analyst
Cover image via u.today

With the last days of 2019 right around the corner, analysts and traders are getting the audience pumped for 2020 forecasts. The third Bitcoin (BTC) halving and Ethereum's probable migration towards its Proof-of-Stake (PoS) consensus will be hot topics for the crypto community. Prominent trader PlanB decided to surf this wave by showing BTC's dominating traction.

Four Stages for Dominance

In the historical chart, PlanB has revealed one of the most important indicators of the crypto world - Bitcoin's market capitalization. This indicator shows the ratio of BTC's market capitalization to the capitalization of all other cryptocurrencies tracked publicly by the available services (4000+ coins). This is used as a sign of comparative demand for altcoins and BTC.

Bitcoin Dominance Historical Chart
Image by: https://twitter.com/100trillionUSD/status/1203012308513017856

Plan B showed the four stages of BTC's dominance, in which the graph is slipped vertically (bottom line indicates 100% BTC market dominance). The first stage, which lasted before April 2017, showed that BTC's dominance was more than 90%. The second stage (April-September 2017) showed that the figures were between 70% and 90%.

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Bitcoin Dominance Reaches 55 Percent, Sets Its New High This Year

Bitcoin Dominance Reaches 55 Percent, Sets Its New High This Year

The third and the fourth stages repeated twice from September 2017 to the present day. In the early days of 2018, the indicator was at an all-times-low of 35%. Now, the graph is about to re-enter BTC's second stage with a 70+% dominance.

Altcoin Annihilation?

PlanB surrounded his picture with the ironic hashtag #altcoinannililation. Therefore, PlanB interpreted this traction as bad sign for the altcoins. It should also be said that some of commentators in PlanB's open thread suggest that the four-stage cycle was launched by the previous BTC halving of July 9, 2016.

Furthermore, we can see that BTC's high price correlates with its low market dominance. With that said, the publication by PlanB forecasts an extremely bearish start for 2020.

Recently, BTC advocate Tuur Demeester claimed that the price of BTC will drop one more time to $5,000. This level will be reached due to the capitulation of "weak" investors prior to the long bull rally.

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About the author

 Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockhain. Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

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